The Stacking Benjamins Show · Wednesday, September 30, 2026
A listener, JD, inquired about why some of his funds issued cash dividends while individual stocks issued qualified dividends. OG explained that all dividends are cash dividends, but the distinction JD observed relates to how they are taxed.
“I recently received my dividends for the end of the second quarter into the first half of the year and noticed that some funds that I've held for over 60 days, some of them for years and years, were issued as cash dividends or ordinary dividends, whereas individual stocks that I have were issued as qualified dividends.”
“Well, I think JD's looking at this through two different sides of the equation. Dividends are paid as a return of profit. If you own a company, and the company makes money, the board of directors has to decide what to do with the money that it made.”
“So what JD is looking at is, hey, I got cash dividends, which all of your dividends are cash. 99.999% of dividends are cash dividends on occasion, companies will issue dividends in the form of stock, which is very weird. But let's just say it's always cash dividends. When he sees qualified dividends, that's relating to how it's taxed.”